Which of These Is Not a Consequence of the Status

question 39

Multiple Choice

Which of these is not a consequence of the status of a company as a separate legal entity?

• A)The right to retain profits.
• B)The obligation to pay taxation.
• C)The right to enter into contracts in its own name.
• D)None of the above, i.e., all are consequences of the status of a company as a separate legal entity.

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Definitions:

Deadweight Loss

A loss of economic efficiency that occurs when equilibrium for a good or a service is not achieved, leading to a misallocation of resources.

Mutually Beneficial Transactions

Economic exchanges that provide benefits to all parties involved, improving their respective situations.

Inefficiency

A situation where resources are not used in the most effective way, leading to wasted potential output.

Price Elasticity

A measure of how much the demand or supply of a product changes in response to a price change.